This Is Not Your Parents’ Housing Market
The calculus on renting versus buying a home in the US has gotten much more complex since the 1960s.
For Americans approaching middle age, homeownership used to be the default assumption. “Stop throwing your money away,” personal finance gurus would tell renters. If you’re planning to stay somewhere for five years, went the rule of thumb, you should buy.
Some continue to spout this advice. But if you’ve spent any time recently looking at listings and doing the math, you know how outmoded it can be. For my situation, as a resident of an expensive coastal city, the online rent-versus-buy calculators are practically unanimous: With prices at record highs and mortgage rates bouncing near 7%, buying right now makes no sense.